IMF Loan: Minority Details Why Ghana Won’t Get Bailout Money By March Despite Government’s Assurances

IMF Loan: Minority Details Why Ghana Won’t Get Bailout Money By March Despite Government’s Assurances

  • Ghana government is not likely to get its hands on the IMF bailout cash this March, despite the president's assurances
  • According to the Minority in Parliament, a key part of the process that would guarantee the loan, a restructuring agreement with China, has not happened yet
  • Per the Minority's estimation, which was contained in a statement by Dr Cassiel Ato Forson in Parliament on March 17, 2023, the bail-out cash won't arrive anytime soon

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The government’s highly anticipated bailout cash from the International Monetary Fund (IMF) won’t hit the central bank’s accounts this March despite the president’s assurances, according to the Minority.

Minority Leader and the spokesperson on Finance Dr Cassiel Ato Forson has explained that a key milestone in the processes that will enable the IMF Board’s approval has not been achieved.

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He has explained that unless China, to which Ghana owes a third of all its loans, agrees to a restructuring deal the IMF Board won’t approve the loan.

Akufo-Addo said Ghana could conclude IMF deal by March 2023 but the Minority says that is impossible
President Nana Akufo-Addo (L) and creative image of $100 dollar notes. Source: Getty Images.
Source: Getty Images
“We need to get China to give Ghana financing assurance and that they are ready to take a haircut and China has not agreed,” he said in Parliament on Friday, March 17.

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Per the Minority’s explanation of the issues, unless China comes to the table, President Nana Akufo-Addo's assurances that Ghana is within reach of the loan are empty.

Akufo-Addo promises Ghana will get an IMF loan by March

During talks two weeks ago with the German Federal Minister of Finance, Christian Lindner, Nana Akufo-Addo said he is hopeful that Ghana can conclude the ongoing negotiations with IMF to get the first tranche of the bailout cash by March.

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The president was basing his assurance on completing the domestic debt restructuring marked by some controversies.

However, the Minority has said the president is being misled in debriefings on the IMF loan that the government is confident would shore up investor confidence and reset the balance of payment anomalies.

Ofori-Atta heads to China for restructuring talks

Meanwhile, finance minister Ken Ofori Atta left Accra over the weekend for China to begin talks with the Asian giant on Ghana’s debt restructuring proposals.

China represents about a third of the $5.7 billion loan Ghana has trouble paying back.

Ofori-Atta left Accra via Addis Ababa, Ethiopia, first for UNECA High-Level Ministers meeting on Global Financial Architecture.

He will fly to China on March 22, 2023, for the talks with the Chinese.

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